ICAI - FAQs on UDIN for GST & Tax Audit - (12-04-2019) - https://www.icai.org/new_post.html?post_id=15563&c_id=240
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Analysis of Supreme Court Judgement in Smt. P. Leelavathi vs. V. Shankarnarayana Rao
Following six circumstances can be taken as a guide while considering whether a particular transaction is benami in nature or not.
Read full case analysis at : https://dasgovernance.com/2019/04/13/analysis-of-supreme-court-judgement-in-smt-p-leelavathi-vs-v-shankarnarayana-rao/
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# DPT-3 Alert - The following changes have been made with regard to filing of One Time Return of DPT-3 vide Circular no. 05/2019 dt. 12-04-2019 :
1. PERIOD OF DEPOSITS to be disclosed has been changed from 01.04.2014 - 22.01.2019 to 01.04.2014 - 31.03.2019.
2. DUE DATE OF FILING has been changed from 22.04.2019 to "within 30 days from the date of deployment of Form DPT-3 on MCA Portal"
# ICAI made UDIN mandatory for all Tax Audit Reports issued under IT Act, 1961 and GST Audit Reports issued under CGST Act, 2017 with effect from 1st April, 2019
For the benefits of Members, detail FAQs on GST & Tax Audit which are available at https://udin.icai.org/faqs
# ICAI : Exposure Draft of Accounting Standard (AS) 34, Interim Financial Reporting (Comments to be received by May 12, 2019)
https://resource.cdn.icai.org/54865asb44042.pdf
# Today is last date to file GSTR -1 for the month of March 2019 for taxpayers with Annual Aggregate turnover More than 1.50 Crore
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💡ICAI decision for deferment of KAM rejected by MCA.Hence applicable in case of all bank audits as on 31/03/2019
SA701 ,“Communicating- Key Audit Matters in the Independent Auditor’s Report”
Applicability of SA 701 Communicating Key Audit Matters
The applicability of New SA 701, Communicating Key Audit Matters (KAM) in the Independent Auditor’s Report is attracted when all the following conditions are satisfied–
1. Company is required to be listed on any stock exchange in India.
2. Financial statements of such listed companies on which opinion is required to be given, to be general purpose financial statements.
3. Such financial statements to be an annual financial statement.
4. If Key audit matters are required to be communicated by law or regulation in the auditor’s report.
The KAM is also applicable in the circumstances when the statutory auditor otherwise decides based on his professional judgement to communicate key audit matters in the auditor’s report of any other company not fulfilling the abovementioned conditions. It is important to note that the key audit matter is not applicable to the limited review report by statutory auditor on quarterly and six-monthly results. Also, KAM is not required to be given in case of the auditor’s report on special purpose financial statements.
Determination of Key Audit Matters
The determination of key audit matter requires diligent application of professional judgement by the auditor. The auditor presents few matters in front of the members of the audit committee (TCWG) on a quarterly/six monthly basis. As prescribed by the standard itself, Key audit matters are to be selected from the matters communicated/presented to audit committee throughout the current audit year. The auditor shall determine/select, out of all the matters communicated during the year, those matters that required significant auditor attention in performing the current year audit. The determination of KAM to be limited to significant matter of the current year audit even when the auditor’s opinion refers to comparative numbers presented in the financial statements. Further, this SA does not require the auditor to update the KAM included in prior period auditor’s report in the current period auditor’s report unless the matter is continuing in the current period as well and determined as key matter again in the current year.
Following are some matters that usually requires significant audit attention –
a. The significant risk areas i.e. area in which the auditor assesses higher risk at audit planning stage.
b. The matters which poses challenge to auditor in forming an opinion of financial statements.
c. Areas where significant management as well as auditor’s judgment is involved for example specialised areas of accounting and auditing where auditor’s expert is used.
d. Areas which includes related party transactions and other complex transactions.
e. Areas where audit partner concludes to consult with others on significant technical matter and areas where significant matter arises on review by internal quality control reviewer.
f. Significant event or transactions that occurred during the year and had impacted the auditor’s overall audit strategy.
Auditor needs to develop preliminary view on matters that are likely to be significant which would require significant attention and eventually be determined as KAM at planning stage. These potential KAM’s to be communicated and be discussed with audit committee and TCWG in advance.
What is not a Key audit matter?
Determination of KAM is a matter of professional judgement. However, standard has clearly guided on few matters not to be KAM. Accordingly, communicating KAM in the auditor’s report is not –
a. A substitute for disclosure in the financial statement as per the applicable GAAP.
b. A substitute for modified opinion by the auditor.
c. A separate opinion on individual matters.
d. A substitute for reporting as per SA 570, when material uncertainty relating to the events or conditions that may cast significant doubt on entity’s ability as a going concern.
How to communicate KAM in the auditor’s report?
Auditor shall describe each key audit matter under a separate sub heading under heading “Key Audit Matters”. The descriptions for each Key audit matter shall be given in every case unless law or regulation prohibits for public disclosure of the matter and in some very rare cases where auditor believes that the matter should not be communicated due to its adverse consequences. In the Key audit matter, the auditor shall also refer the relevant disclosures made in the financial statement. Also, auditor needs to state as to why that matter has been determined as a key and how the matters has been dealt with during course of the audit. However, SA 705 (Revised) prohibits the auditor from communicating key audit matters when the auditor disclaims an opinion on the financial statements, unless such reporting is required by law or regulation.
Documentation in relation to Key Audit Matters
Auditor needs to document following in relation to KAM –
a. Matters that required significant auditor attention and rationale for auditor’s determination about key audit matter from the all the matters that required significant auditor attention.
b. Where applicable, the rational for auditor’s determination that there are no other KAM’s other than those included as part of basis for qualified/adverse opinion para.
c. Where applicable, the rationale behind not communicating the matter which was determined as a key audit matter.
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GST: Rs 1.5-crore hawala cash seized, 4 held in Kanpur:
READ MORE- https://www.gststation.in/gst-rs-1-5-crore-hawala-cash-seized-4-held-in-kanpur/
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Income Tax Department issued clearances to all 277 startups shielding them from the what has been popularly dubbed as the angel tax, as the government gets cracking with the implementation of the new startup framework
Real estate developers have time until May 10 to decide on whether to stick to the old 12 (residential) or 8 per cent (affordable housing) rate with input tax credit or the new 5 per cent (residential) and one per cent (affordable housing) rate with no credits.
MCA extends due date of filing DPT-3 to 30 days from deployment of Form on MCA portal and information to given for details upto 31.3.2019 and not 22.1.2019 - Rule to be amended shortly
MCA has clarified that Business Activities to be carried out by Limited Liability Partnerships (LLP) to exclude manufacturing & Allied activities. As per section 2(1)(e) of the LLP Act, 2008, Business includes trade, profession, services and occupation.
RBI spot dollar purchases hit an 11-month high in February when the central bank purchased $825 million from the market to absorb foreign portfolio inflows amid weak dollar demand. RBI bought $2,086 million and sold $1,261 million from the spot market
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👉As many as 277 startups have got an all clear certificate from Income Tax Department, shielding them from the what has been popularly dubbed as the Angel Tax, as the Government gets cracking with the implementation of the New Startup Framework. A total of 302 entities had applied for it.
👉RBI injected a total liquidity of Rs 2.98 Lakh Crore in the market in 2018-19
👉RBI permits Reinsurance Brokers to open Non-Interest Bearing Foreign Currency Accounts with banks for undertaking transactions.
👉SEBI issues Revised Guidelines for System Audit to be conducted by Mutual Funds and Asset Management Companies (AMCs). The guidelines come after "considering the importance of system audit in technology driven asset management activity and to enhance and standardise the system audit.
👉ICAI requests MCA to waive off additional fees for filling ADT-1 where form ADT-1 was was filed manually and was submitted along with Form GNL-2.
👉MCA extends last date for filing Form DPT-3 from date of deployment on MCA portal. The additional fees, shall be levied after 30 days from the date of deployment of the DPT- 3 form on MCA 21 portal.
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💡MCA UPDATE ON DIR3 KYC
Stakeholders may please note that DIN holders are required to file the DIR-3 KYC form every year, so that they are aware of and confirm the data & information as available in the MCA21 system.
With the objective of making the form more user friendly, the form is presently being modified to enable pre-filling of data & information so that annual filings can be done by DIN holders in a simple and user friendly manner.
The revised form, which will be shortly deployed, can be filed without any fee within a period of 30 days from the date of deployment. Accordingly, DIN holders who had filed DIR-3 KYC form earlier and complied with the said provisions may kindly await the deployment of the modified form for fulfilling their compliance requirements.
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GST: One-time tax settlement boost for state exchequer:
READ MORE- https://www.gststation.in/gst-one-time-tax-settlement-boost-for-state-exchequer/
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MCA Update
13 April 2019
NEWS & IMPORTANT UPDATES
As per rule 12A of the Companies (Appointment and Qualification of Directors) Rules 2014, “every individual who has been allotted a Director Identification Number (DIN) as on 31st March of a financial year as per these rules shall, submit e-form DIR-3-KYC to the Central Government on or before 30th April of immediate next financial year.
Provided that every individual who has already been allotted a Director Identification Number (DIN) as at 31st March, 2018, shall submit e-form DIR-3 KYC on or before 5th October,2018.” However, the DIR-3 KYC e-form presently available on the portal does not cater for the following:
(i) Filing on annual basis, and
(ii) Filing in respect of DINs allotted post 31 March 2018. It presently caters only to those individuals who were allotted DINs as on 31st March 2018 and whose DINs have been marked as ‘Deactivated due to non-filing of DIR-3 KYC’.
Stakeholders may please note that DIN holders are required to file the DIR-3 KYC form every year, so that they are aware of and confirm the data & information as available in the MCA21 system.
With the objective of making the form more user friendly, the form is presently being modified to enable pre-filling of data & information so that annual filings can be done by DIN holders in a simple and user friendly manner.
The revised form, which will be shortly deployed, can be filed without any fee within a period of 30 days from the date of deployment. Accordingly, DIN holders who had filed DIR-3 KYC form earlier and complied with the said provisions may kindly await the deployment of the modified form for fulfilling their compliance requirements.
www.mca.gov.in
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SBI, Bank of Baroda savings accounts: minimum balance rules, penalty explained:
READ MORE- https://www.gststation.in/sbi-bank-of-baroda-savings-accounts-minimum-balance-rules-penalty-explained/
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Today last date of filing GSTR-1 Monthly but GST site not working properly:
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How to claim income tax benefit on donations; get up to 100% deduction:
READ MORE- https://www.gststation.in/how-to-claim-income-tax-benefit-on-donations-get-up-to-100-deduction/
